For consortiums/ Joint ventures, where ever applicable, the net worth of all consortiums/ joint
venture members in combined manner should not be less than 100% of their paid up share capital.
However, individually, their net worth should not be less than 75% of their respective paid up share
capital.
7.2.3 In case the bidder is not able to furnish its audited financial statement on standalone entity
basis, the unaudited unconsolidated financial statements of the bidder can be considered
acceptable provided the bidder furnishes the following further documents on substantiation of its
qualification.
a. Copies of the unaudited unconsolidated financial statement of the bidder along with copies of
the audited consolidated financial statements of the Holding Company.
b. A Certificate from the CEO / CFO of the Holding Company, as per format enclosed in the bid
documents, stating that the unaudited unconsolidated financial statement form part of
Consolidated Annual Report of the company.
In cases where audited results for the last preceding financial year are not available, certification of
financial statements from practicing Chartered Accountant shall also be considered acceptable. In
case the bidder is not able to submit the Certificate from the practicing Chartered Accountant
certifying its financial parameters, the audited results of three consecutive financial years
preceding last financial year shall be considered for evaluating the financial parameters. Further,
a certificate would be required from the CEO/CFO as per the format enclosed in the bidding
documents stating that the financial results of the Company are under audit as on the date of
Techno-Commercial bid opening and certificate from the practicing Chartered Accountant
certifying the financial parameters is not available.
7.2.4 In case a bidder does not satisfy the financial criteria stipulated at para 7.2.1 and / or para
7.2.2 above on its own, the Holding company would be required to meet the stipulated turnover
requirements at para 7.2.1 above, provided that the net worth of the Holding Company as on the
last day of the preceding financial year is at least equal to or more than the paid up share capital
of the Holding Company. In such an event, the bidder would be required to furnish along with its
bid, a letter of Undertaking from the holding company, supported by Board Resolution, as per
format enclosed in the bid documents, pledging unconditional and irrevocable financial support for
the execution of the Contract by the bidder in case of award.
7.2.5 Notes:
(i) Net worth means the sum total of the paid up share capital and free reserves. Free reserve means
all reserves credited out of the profits and share premium account but does not include reserves
credited out of the revaluation of the assets, write back of depreciation provision and amalgamation.
Further any debit balance of Profit and Loss account and miscellaneous expenses to the extent not
adjusted or written off, if any, shall be reduced from Reserves and Surplus.
(ii) Other income shall not be considered for arriving at annual turnover.